Just before its direct listing on Nasdaq, traders swapped shares of Coinbase at nearly $375. This could bring the valuation to $100 billion.
Coinbase has not yet been publicly listed, and the market is already got. People look forward to the most anticipated direct listing in the cryptocurrency world. This will also be the first major listing on Nasdaq.
Based on an independent valuation of the share price in the private equity market before direct listing, Coinbase’s potential valuation is between $90 billion and $100 billion.
Coinbase Went Up During its Pre-Listing Days
According to transactions in late February, the projected price will far exceed its previous valuation of $77 billion. At the time, confidential sources said as the “big day” approached, speculators were bidding higher for stocks.
Bloomberg reported that on the final day of private equity deals before the direct listing, investors were trading Coinbase shares at a price between $350 and $375, which would raise Coinbase’s valuation by as much as 33% in a matter of weeks, and over 300% higher than what analysts expected for its IPO.
Before listing, accredited investors could trade Coinbase shares on the Nasdaq private market. This is a restricted, low-volume, high-volatility market, where a limited number of participants can speculate on the price of some shares of companies that are not yet publicly traded.
However, these numbers do add up to the expected performance. After a terrible year during the bear market in the crypto market in 2018, Coinbase has grown into the giant it is today.
Giant Leap for the Crypto Industry
Because of its characteristics, the private equity market is not necessarily an accurate indicator of what will happen when Coinbase is publicly available. However, this is an excellent reference for understanding what the market expects … and the future looks bright.
Not only are we talking about Coinbase, but almost the entire cryptocurrency ecosystem. Coinbase’s listing is one of the major recent endorsements for the crypto industry.
The United States is one of the countries with the largest stock market transactions. It also has one of the largest GDPs in the world. They have a large concentration of cryptocurrency startups but are known for their tough digital asset laws.
From the perspective of potential new users, a stock exchange listing can offer more legitimacy. This can also stimulate the growth of the customer base. This will only accelerate the growth trend over time, especially after the COVID-19 market crisis.